New Delhi: The Confederation of Indian Industry (CII) on Thursday said that the 7 percent growth pegged by the Economic Survey for 2019-20 is a pragmatic target.
"The year 2019-20 has delivered a huge political mandate for the government, which augurs well for high economic growth. Real GDP growth for the year 2019-20 is projected at 7 per cent, reflecting a recovery in the economy after a deceleration in the growth momentum throughout 2018-19," the Survey said.
“The 7 percent growth pegged by the Economic Survey for 2019-20 is a pragmatic target and with the right policy levers in place, we can step-up growth to sustain an average growth rate of 8 percent over the next five years. Concerted effort is required to drive an improvement in private investment along with robust consumption to lift growth in the current fiscal from a multi-year low of 6.8 percent posted in 2018-19. However, the headwinds to growth as underlined by the Survey in the form of weaker exports growth and stress in shadow banking system are the main areas of concern which have been highlighted by CII as well, Chandrajit Banerjee, Director General, CII, said.
CII said that it is in affirmation with the Survey’s key prognosis that for sustaining growth at 8 percent, investment would need to be the “key driver” for heralding simultaneous growth in demand, jobs, exports & productivity.
The Economic Survey 2019 was tabled by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman in Parliament on Thursday outlining blueprint to achieve PM Narendra Modi's dream of USD 5 trillion economy.